STRATEGIC HUMAN RESOURCE MANAGEMENT THE ROLE OF HR

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STRATEGIC HUMAN RESOURCE MANAGEMENT & THE ROLE OF HR This resource is part of

STRATEGIC HUMAN RESOURCE MANAGEMENT & THE ROLE OF HR This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

THE CLOUDY NATURE OF STRATEGY ‘Strategy is problem solving in unstructured situations. ’ Lester

THE CLOUDY NATURE OF STRATEGY ‘Strategy is problem solving in unstructured situations. ’ Lester Dignam ‘There is a gap between the rhetoric and the reality of SHRM. ’ John Purcell Lynda Grattan ‘Strategy is a emergent and flexible. ’ pattern in a stream of activities. ’ Sean Tyson ‘Strategy consists of illusions in the board room. ’ Henry Mintzberg ‘Strategy is often fragmentary, evolutionary and largely intuitive. ’ James Quinn This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

SO WHAT IS STRATEGIC HUMAN RESOURCE MANAGEMENT? Is it about long-range strategic planning? Is

SO WHAT IS STRATEGIC HUMAN RESOURCE MANAGEMENT? Is it about long-range strategic planning? Is it about day-to-day strategic management? Or is it about both? This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

STRATEGIC HRM DEFINED Strategic HRM is the process of defining how the organization’s goals

STRATEGIC HRM DEFINED Strategic HRM is the process of defining how the organization’s goals will be achieved through people by means of HR strategies and integrated HR policies and practices. This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

MODEL OF STRATEGIC HRM Strategic management – strategic role of HR HR strategies –

MODEL OF STRATEGIC HRM Strategic management – strategic role of HR HR strategies – overall/specific Strategic choice Strategic analysis This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

VIEWS ON THE STRATEGIC BUSINESS PARTNER CONCEPT ‘My credibility depends on running an extremely

VIEWS ON THE STRATEGIC BUSINESS PARTNER CONCEPT ‘My credibility depends on running an extremely efficient and cost-effective administrative machine… If I don’t get that right, and consistently, then you can forget about any big ideas. ’ HR Director ‘Give me a break! It’s so demeaning. How many people in marketing or finance have to say they are a partner in the business? Why do we have to think that we’re not an intimate part of the business, just like sales, manufacturing and engineering? I detest and loathe term and I won’t use it. ’ Tim Miller, Standard Chartered Bank ‘The CIP thinks that we will all be strategic business partners, and we’re not, you know. We have to deal with day-to-day HR issues that arise in the business. ’ Student practitioner ‘The term worries me to death. HR has to be an integral and fundamental part of developing the strategy of the business. I don’t even like the term ‘close to the business’ because, like ‘business partner’, it implies we are working alongside our line management colleagues but on a separate track, rather than people management being an integral part of the business. ’ Alex Wilson, BT This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

HR’s STRATEGIC ROLES Formulate integrated HR strategies Contribute to the development of business strategies

HR’s STRATEGIC ROLES Formulate integrated HR strategies Contribute to the development of business strategies Work with line managers to support the achievement of their business goals This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

SEVEN STEPS TO BEING STRATEGIC Aware of business context Understand the business Appreciate how

SEVEN STEPS TO BEING STRATEGIC Aware of business context Understand the business Appreciate how HR can add value See the big picture Act as change agent Practice evidence. Make based convincing business management case for innovation This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

SO WHAT ABOUT HR STRATEGY? This resource is part of a range offered free

SO WHAT ABOUT HR STRATEGY? This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

HR STRATEGY AREAS • • • Overall: performance engagement ‘the big idea’ human capital

HR STRATEGY AREAS • • • Overall: performance engagement ‘the big idea’ human capital advantage HRM process advantage etc • • Specific: organization development corporate social responsibility resourcing talent management learning and development employee reward employee relations employee well-being This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

EXAMPLES OF OVERALL HR STRATEGIES A strong focus on the overall effectiveness of the

EXAMPLES OF OVERALL HR STRATEGIES A strong focus on the overall effectiveness of the organization, its direction and how it's performing. There is commitment to, belief in, and respect for individuals. New Forest Council The only HR strategy you really need is the tangible expression of values and the implementation of values. West Water Maintain competitive advantage by continuing to attract very high calibre people. Boots Stimulate changes on a broad front aimed at achieving competitive advantage through people. Pilkington Optronics We want GSK to be a place where the best people do their best work. Glaxo. Smith. Kline Staff who are enjoying themselves, are being supported and developed, and who feel fulfilled and respected at work, will provide the best service to customers. Lands’ End This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

BALANCED SCORECARD IN AN INTERNATIONAL CHARITY Organizational effectiveness perspective: • programme development • programme

BALANCED SCORECARD IN AN INTERNATIONAL CHARITY Organizational effectiveness perspective: • programme development • programme delivery • process development and management • cost-effectiveness Financial perspective: • income growth • enlistment and retention of supporters • cost/income ratio • • Stakeholder perspective: impact on clients relationships with key funding agencies and supporters development of brand influence People perspective: leadership behaviour talent management learning and development employee satisfaction – a ‘great place to work’ This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

CRITERIA FOR HR STRATEGIES • Aligned to corporate goals • Set out clear aims

CRITERIA FOR HR STRATEGIES • Aligned to corporate goals • Set out clear aims • Supported by business case • Take account of individual as well as business needs • Contain realistic and achievable plans for implementation This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

STRATEGIC HRM GUIDELINES • Be clear on what has to be achieved and why

STRATEGIC HRM GUIDELINES • Be clear on what has to be achieved and why • Ensure that what you do fits the business strategy, culture and circumstances of the organization • Aim for continuous improvement – evolution not revolution • Don’t follow fashion – do your own thing • Keep it simple – over-complexity is a common reason for failure • Don’t rush – it takes longer than you think • Assess resource requirements and costs • Manage change – involve, communicate and train This resource is part of a range offered free to academics and/or students using Armstrong’s Handbook of Human Resource Management Practice , 11 th edition, as part of their course. For more academic resources and other FREE material, please visit www. koganpage. com/resources and then click on Academic Resources.

The role of the HR function ● Take initiatives and provide guidance, support and

The role of the HR function ● Take initiatives and provide guidance, support and services on all matters relating to the organization’s employees in order to support the achievements of business goals ● Ensure that HR strategies, policies and practices are introduced and maintained that cater for everything concerning the employment, development and well-being of people and the relationships that exist between management and the workforce. ● Further the creation of an environment that enables people to make the best use of their capacities, to realize their potential to the benefit of both the organization and themselves and, by improving the quality of working life, to achieve satisfaction through their work

The activities & Diversity of the HR function ● Strategic (transformational) activities concerned with

The activities & Diversity of the HR function ● Strategic (transformational) activities concerned with the alignment and implementation of HR and business strategies. ● Transactional – the main HR service delivery activities of resourcing, learning and development, reward and employee relations. HR management involves a variety of roles and activities that differ from one organization to another and from one level to another in the same organization

The Ulrich ‘three-legged stool’ model of HR organization ● Centres of expertise – these

The Ulrich ‘three-legged stool’ model of HR organization ● Centres of expertise – these specialize in the provision of high-level advice and services on key HR activities. ● Strategic business partners – these work with line managers to help them reach their goals through effective strategy formulation and execution. They are often ‘embedded’ in business units or departments. ● Shared service centres – these handle all the routine ‘transactional’ services across the business, which include such activities as recruitment, absence monitoring and advice on dealing with employee issues such as discipline and absenteeism.

Guidelines on organizing the HR function ● The head of the function should report

Guidelines on organizing the HR function ● The head of the function should report directly to the chief executive and be a member of the top management team involved in developing business strategy. ● Operational units should be responsible for their own HR management affairs within the framework of broad strategic and policy guidelines from the centre. ● The professional members of the function should have ‘strategic capability’. ● Increased responsibility for HR matters should be devolved to line managers

Criteria for evaluating the effectiveness of the HR function • Its ability to operate

Criteria for evaluating the effectiveness of the HR function • Its ability to operate strategically and its capacity to deliver the levels of services required. The dimensions of HR effectiveness ● Strategic HRM – the delivery of services in a way that supports the implementation of the firm’s strategy. ● Technical HRM – the delivery of HR basics such as recruitment, compensation and benefits.

Quantitative criteria for evaluating the HR function ● Organizational: added value per employee, profit

Quantitative criteria for evaluating the HR function ● Organizational: added value per employee, profit per employee, sales value per employee, costs per employee, added value per £ of employment costs. ● Employee behaviour: retention and turnover rates, absenteeism, sickness, accident rates, grievances, disputes, references to employment tribunals, successful suggestion scheme outcomes. ● HR service levels and outcomes: time to fill vacancies, time to respond to applicants, measurable improvements in organizational performance as a result of HR practices, ratio of HR costs to total costs, ratio of HR staff to employees.

How HR people can demonstrate their effectiveness ● Understand the business strategy. ● Anticipate

How HR people can demonstrate their effectiveness ● Understand the business strategy. ● Anticipate business needs and propose realistically how HR can help to meet them. ● Show that they are capable of meeting performance standards. ● Provide relevant, clear, convincing and practical advice. ● Provide efficient and effective services. ● Generally reveal their understanding and expertise.

The HR scorecard (Beatty et al, 2003) The four headings are: • 1. HR

The HR scorecard (Beatty et al, 2003) The four headings are: • 1. HR competencies – administrative expertise, employee advocacy, strategy execution and change agency. • 2. HR practices – communication, work design, selection, development, measurement and rewards. • 3. HR systems – alignment, integration and differentiation. • 4. HR deliverables – workforce mindset, technical knowledge, and workforce behaviour.

The HR role of line managers HR can initiate new policies and practices but

The HR role of line managers HR can initiate new policies and practices but it is the line that has the main responsibility for implementing them. Better ownership by line managers of HR practices is more likely to be achieved if: ● the practice demonstrably benefits them; ● they are involved in the development and the testing of the practices; ● the practice is not too complicated, bureaucratic or timeconsuming; ● their responsibilities are defined and communicated clearly; ● they are provided with the guidance, support and training required to implement the practice.

References • Armstrong’s Handbook of Human Resource Management Practice, 11 th edition, • Handouts

References • Armstrong’s Handbook of Human Resource Management Practice, 11 th edition, • Handouts on Learnet – Strategic HRM – Role of HR Function – Impact of HRM – HR Strategies